PPT_ Coca Cola
Running Head: BUSINESS REPORT 2: OPERATIONS MANAGEMENT PROCESSES 1
BUSINESS REPORT 2: OPERATIONS MANAGEMENT PROCESSES 3
Contents Introduction 3 Type of Organizational Structure 3 Communication Dynamics 5 Transformation Process 7 Supply Chain Strategies 9 Total Quality Management 10 Conclusion 12 References 14
Introduction
Coca-Cola soft drink is a freshwater trademark that was born and registered in the U.S in 1893, introduced by a pharmacist, which later dominated the world's market during the 20th century yet started the process of transformation of America's image of Coca Cola. The product comes from coca leaves and Cola fruit, which made the main components of Coca-Cola drinks. Coca-Cola soft drinks became world-famous with many diverse products such as Coca-Cola Light (Diet Coke, or Diet Coke), Coca-Cola Cherry. Coca-Cola is sold in shops, restaurants, vending machines in over 200 countries worldwide. The Coca-Cola Company states, “We are passionate about drinks in 200+ countries, with 500+ brands — from Coca-Cola to Zico coconut water, to Costa coffee, and Our people are as diverse as our communities, with 700,000+ employees across company and bottling partners.” (Coca-Cola Company Trademark 2020) Products serve more than 705 million times a day, thirst needs of consumers in over 195 countries in all climates. Today, you can find Coca-Cola in most parts of the world.
This paper is intended to discuss the main business processes of this product and tends to discuss its Type of Organizational Structure, Communication Dynamics, Its Transformation process, Supply Chain Strategies, and Total quality management processes that took effect to produce the best soft drink in the world.
Type of Organizational Structure
According to researches, the success of the Coca-Cola Company has been facilitated by the functional organization structure. It is through the functional organization structure whereby the company has been able to carry out different tasks in an expected manner, therefore, facilitating the satisfaction of the customers in the market. The management of the company has been able to contribute to the success of the organization structure in that it has been able to ensure that a high level of specialization is enhanced (Gómez, 2019).
The high level of specialization in the company has played important roles in ensuring that the quality of production is made effective therefore ensuring that the goals and the objectives of the company are achieved in the set time. The functional organization structure has again played important roles in ensuring that the employees in the company are made experts.
As a result, this has played important in the development of the company in that the workers are encouraged to improve their performance to ensure that the goals and the objectives of the company are achieved. The ability of the functional organization structure to bring about the expertise of the employees has again ensured that the competitive advantage of the company is improved therefore ensuring that a large number of customers in the market are attracted to the business.
Moreover, the functional organization structure used in the company has helped in ensuring that the staff working skills are effectively improved. This plays an important role in ensuring that the quality of production is improved and the staff is encouraged to work for the success of the company. The improvement of the working skills of the staff brings about benefits to the company in that the errors experienced during the production processes are addressed and the workers are encouraged to work expected expectedly (Kang, 2019).
Again, when the working skills of the workers in the company are improved, the rates of the company’s production are increased. However, this plays a significant role in ensuring that the customers in the market are provided with enough goods which ensure that their needs are satisfied in the shortest time possible. The functional organization structure used by the company has again helped in ensuring that the employees remain productive to ensure that the goals and the objectives of the company are achieved.
On carrying out the analysis of the company, the functional organization structure has helped in ensuring that work efficiency and productivity are enhanced. It is through the enhancement of work efficiency and productivity whereby the customers in the market are provided with quality products that motivate them to purchase more of the products.
The success of the company has therefore been facilitated by the ability of the management to ensure that the functional organization structure is utilized efficiently. This has therefore helped in ensuring that the problems experienced are addressed in the best way possible hence making it easy for the business to operate successfully.
The functional organization structure has enabled the management of the company to operate it based on the available skills and expertise of the employees. It is through these whereby different products have been produced and hence supplied to the customers in different parts of the world. The functional organization structure has again played important roles in reducing the confusion of the employees hence encouraging them to work efficiently (Lee, 2019).
Communication Dynamics
Communication is one of the important aspects of different organizations that should be considered for ensuring that different activities are carried out accordingly. It is through the communication carried out in different businesses whereby the issues, as well as the problems experienced, are addressed in the shortest time possible therefore making it easy for the goals and the objectives of the businesses to be achieved (Brondoni, 2020).
As far as the Coca-Cola Company is concerned, different communication dynamics are used in ensuring that the management of the company communicates with its employees as well as the customers in the market. Some of the examples of the communication dynamics used by the company are published media and visual and aural media. On matters related to the published media, the company has been able to make effective use of newspapers and trade and professional press hence ensuring that the customers and the employees can acquire enough information about the company.
The newspapers, the trade and professional press have played important roles in ensuring that the customers are reached in a short timeframe, therefore, ensuring that the business operates successfully. Again, face to face communication is used in the company to ensure that the issues experienced by the employees are addressed. Moreover, the face to face communication has helped in ensuring that the cases of time wastage are reduced especially during the problem-solving processes of the company (Singaram, 2019).
On the other hand, the published media has been used in ensuring that the advertisements of the company are carried out. This has played important roles in ensuring that the number of sales made by the company is increased therefore ensuring that the profits made by the company are increased. The effective use of the published media has therefore enabled the company to increase its market share hence improving how different processes are carried out.
Again, the company has been able to make use of both visual and aural media. Some of the visual and aural media used by the company include; radio, television, posters, and billboards. The visual and aural media have therefore been used in the different countries, ensuring that awareness is created on the existence of the products in the market.
The ability of the company to use the visual and aural media has enabled it to counter the increased competition from the other companies in the market. The company has used its communication dynamics in ensuring that different decisions are made in the best way possible. However, the types of communication used in the company have played important roles in ensuring that the employees and the customers in the market are engaged in ensuring that the goals and the objectives of the company are achieved.
In a situation whereby, new brands are brought in the market, the company makes use of the visual and aural media in ensuring that the customers are made aware of the brands. This has played significant roles in ensuring that the sales of the products are increased therefore contributing to the success of the company. To conclude, the management of the company should involve different stakeholders in the operations carried to ensure that the right dynamics of communication are used in the company. However, this will play important roles in ensuring that different problems are addressed in the best way possible (Wood, 2020).
Transformation Process
Coca-Cola has a long and successful history as a beverage company because it focused from the beginning on its ability to transform resources into goods that bring value to its consumers. To achieve the level of success the company has seen in its transformation process Coca-Cola had to reinvent it and rely heavily on good policy, procedures, and technology.
Coca-Cola made a milestone transformation process change unlike other companies in the industry. In 2010, Coca Cola reshaped its bottling operations by returning ownership to local businesses making them franchised partners responsible for distribution and bottling the products. This is significant because before then it had a few national and international bottler partners that were meeting business needs but lacked agility in meeting the local consumer’s needs. “In October 2017, J. Alexander “Sandy” Douglas Jr., then president of Coca-Cola North America, said: “We are reshaping our business and accelerating our transformation to become a total beverage company. Our system is built to respond to consumers’ needs in a fast-moving and highly competitive environment. Returning the local part of our business … is a key enabler of the exciting transformation and growth of our business” (Haufmann, 2019) What this means is that the Coca-Cola Company mostly sells concentrates and syrups to these smaller franchisees throughout the world who are in charge of using the proper inputs of land, labor, and materials to convert the branded drinks into goods that met local consumer’s needs.
Coca-Cola isn’t dismissive of how franchisee’s produced and distributes its brand. There are several procedures, policies and sustainability guidelines that Coca-Cola enforces with its franchisees to ensure that resources are properly converted into standard final goods. Within its manufacturing operation, there are sustainable agricultural guidelines that include a requirement for the management system, recordkeeping, and transparency.
The franchised nature of most of its operations requires a strong IT system. Superb technological systems are critical for coordination and management of information between bottling partners on a local, regional and national level. A robust IT system that minimizes disruptions is imperative in Coca-Cola’s system. Coca-Cola’s technology is a compelling part of the transformation process. The emphasis on IT by Coca-Cola is not limited to just the procurement and distribution with its franchisees it is also a significant statistical measure of Coca-Cola’s ability to deliver what consumers demands. Because Coca-Cola’s distribution is a very small factor in its business, understanding markets and marketing is significant. “Coca-Cola North America’s Decision Science and Data Strategy Center of Excellence analyze all data captured across Coke’s digital ecosystem, giving teams across the company a big-picture view of opportunities.” (Coca-Cola, 2018) The data obtained helps Coca-Cola create innovative beverages that consumers would want to drink.
Supply Chain Strategies
For any strategy to be effective, it must include all the key players involved in the supply chain. Organizations should also be thinking of what the customer wants and what it takes to retain those customers. Other areas that should be taken into consideration are the logistical aspects, such as transportation, packaging and inventory. Another main area is finances, the organization should be thinking about how they will meet their goals by spending as little money as possible. Supply chain strategies should be developed in order to be able to handle consumer demands.
With more than 500 brands and over 800 drink varieties in the U.S., Coca-Cola’s serving rate is about 1.9 billion a day. Coca-Cola has about 225 partners worldwide bottling, but it all starts with Coca-Cola, they manufacture and sell concentrated beverage bases and syrups to bottling operations. The bottlers then mix the concentrated beverage with water or other sweeteners in order to sell the finished beverage. Their supply chain strategy has been lined up with their vision in order to meet the goals of the organization. In 2009 Coca-Cola released their Freestyle machine, a beverage fountain that can dispense almost 200 different drink options. The Freestyle machine really met the consumer demands by being able to select from regular Coca-Cola to Coca-Cola vanilla, sprite with grape flavor etc.
Coca-Cola’s Vision: “Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better shared future that makes a difference in people’s lives, communities and our planet” (Coca-Cola, 2020).
In 2006, BIG (Bottling Investments Group) was created to ensure the company owned bottling “operations received the appropriate investments and expertise to ensure their long-term success” (Coca-Cola, 2020). BIG helps struggling bottling franchises and provide the assistance needed in order to stay with the Coca-Cola franchise. A qualified bottler assumes operations once the franchise is stable and making profits. “A long-term company goal is to end the BIG program by having zero need and further consolidate its bottlers” (Buehler, 2019).
Coca-Cola still has overall control and responsibility for the brand marketing initiatives, the bottling partners take care of the packaging and distribution to the consumers. “All bottling partners work closely with customers –grocery stores, restaurants, street vendors, convenience stores, movie theaters and amusement parks, among many others –to execute localized strategies developed in partnership with” Coca-Cola (Coca-Cola, 2020). They work closely with suppliers, who provide packaging, machinery and other goods and services. These suppliers are required to comply with any laws and regulations that are in place. Coca-Cola has been able to maintain good working relationships with its suppliers and bottling partners.
Total Quality Management
Coca Cola’s mission statement developed strategies to provide the best routes that make sure the product and package quality meet the marketplace and the company requirements and consumer demands. The global nature of their business requires that the Coca-Cola system has the highest standards and processes for ensuring consistent product safety. The main idea behind Total Quality Management emphasized a unique management approach that aims for long-term success by focusing on customer satisfaction. One of the most pivotal strategies that this organization demonstrated was the understanding of Total Quality Management in which all members of the organization are striking to improve the processes, products, services, and the culture in which they work. Based on their mission statement, the foundation of this company is based on the company’s strategy that provides the essentials of making the planet a better place, according to 2018 Business & Sustainability Report, the global chain Coca-Cola tells us “Our planet matters. We act in ways to create a more sustainable and better-shared future. To make a difference in people's lives, communities, and our planet by doing business the right way.” Across the globe and around the clock, this company never stop working to give people the drinks they want and to improve the world we all share. Their passion for consumers into the brand’s people loves and creates shared opportunity through growth. That’s the essence of Coca-Cola’s main transformation
Quality is about manufacturing a product that people can depend on every time they reach for it. It is clear for Coca-Cola to spend its time understanding product and package quality that becomes an essential part of developing great products by utilizing and making sure their products in the marketplace meet Company requirements and consumer demands. The global nature of their business requires that the Coca-Cola system has the highest standards and processes for ensuring consistent product safety. According to Coca-Cola’s Chief Executive Officer James Quincey, “While many brands have come and gone during the past 133 years, our success is based in part on our history of investing in the success and sustainability of the communities we call home, from our hometown of Atlanta to more than 200 countries and territories where you can find our products today.” (Coca-Cola business and sustainability report 2018) Therefore, Coca Cola developed a system that is called the Coca Cola Management System to manage its product quality. That will hold all of their operations in the same standards for production and distribution. Guaranteed the highest standards in quality, the environment, safety and the health of the customer. And they require each business within the Coca-Cola system must establish, implement, document and maintain safety and quality system under TCCMS requirements.
Conclusion
In conclusion, Coca Cola is one of the most popular brands in the world, while the company is proud of its business results in 2018; companies like Coca-Cola have a responsibility as leaders. They grow and will continue to support local economies and help create economic opportunities. The company’s commitment to doing business the right way continued in 2018, as it was set out to show the world that the drinks, they love can make life more enjoyable, without harming the planet and the natural resources now company depends on. In early 2018, the company announced World without Waste initiative with a clear, simple goal: to help collect and recycle a bottle or can for each one they sell by 2030. Furthermore, to get that success; Coca Cola attaches special strategies to both the quality and quantity of its products. The Operation Management helps them to maintain that more easily. Generally, in business, operations management support for the company comes in with plenty of responsibilities. Therefore, management operations have many areas, from managing their field concerned with the management and direction to help better manage human resources or technical functions of a company, particularly those relating to the development, production, and production. Strategic manufacturing policy, systems analysis, analysis, productivity and cost control helps to calculate the exact purchase materials to reduce the risks of material cost.
Analyze the profitability of the product can help companies anticipate the advantages and disadvantages to avoid, more generally, management activities to enhance the content value-added activities in any specific process. The value-adding creative activities should be associated with market opportunity for optimal enterprise performance. Therefore, Type of Organizational Structure, Communication Dynamics, Its Transformation process, Supply Chain Strategies, and Total quality management processes become the most essential parts of the company.
References
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Coca-Cola. (2020, Jan. 30). Coca-Cola System. Retrieved from Coca-Cola Company:
https://www.coca-colacompany.com/company/coca-cola-system
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https://www.coca-colacompany.com/company/purpose-and-vision
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